Which of the Following Statements About a Perfectly Competitive Industry

question 113

Multiple Choice

Which of the following statements about a perfectly competitive industry in long- run equilibrium is true?

• A) Individual firms will have no incentive for technological improvement.
• B) Each firm is producing at the minimum point on its LRAC curve.
• C) Losses are tolerable because of high fixed costs.
• D) In order to stay in the industry each firm is making an economic profit.
• E) Firms must exhibit economies of scale.

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Definitions:

Transfer to Another State

The process of moving a legal case or an individual, such as a parolee or prisoner, from one state's jurisdiction to another.

Four Months

A period of time equal to approximately 120 days, often used in the context of timelines for projects, payments, or legal matters.

After-Acquired Property

Property acquired by a debtor after a security agreement is signed, which may still be subject to a creditor's claim.

Security Agreement

A contract that creates a lien on collateral, securing the performance of an obligation, commonly used in secured loan transactions.